EU Energy plc, a UK-based alternative energy company, has announced that EU Energy Inc (EU Inc), its US-based fully owned subsidiary, has concluded an agreement with CTC Wind Systems Corporation (CTC Wind). CTC Wind is a 100% owned subsidiary of Composite Technology Corporation, a developer of high-performance composite core cables for electric transmission and distribution lines.
Under the terms of the agreement between CTC Wind and EU Inc, CTC Wind shall complete a due diligence review of the business and prospects of EU Inc, at the end of which CTC Wind shall have the right of acquiring 48% of the issued share capital of EU Inc. In the event CTC decides to pursue the acquisition, CTC Wind will be required to pay to EU Inc US$ 1 million on closing, with a further US$ 4 million due in two instalments on 1 March 2006 and 1 April 2006 respectively, for the 48% interest in EU Inc.